PST is payable on goods, unless an exemption applies (e.g. goods purchased for resale). PST applies to the taxable goods you purchase or lease for use in your business.

Is PST charged on goods for resale?

The appropriate Provincial Sales Tax is based upon the destination of the goods or services, not their origin. If, however, the goods or services are purchased for resale, the supplier is not required to charge PST on the basis of the purchaser’s licensed PST registration number.

What services are exempt from PST in BC?

Some goods and services aren’t taxed under PST, such as:

• Sales and rentals of real property (e.g. house, commercial property)
• Public and private campsites.
• Admissions and memberships.
• Professional services (other than legal services)
• Transportation fares (e.g. bus, train, ferry, airline)

  Do you charge PST on equipment?

  You must charge PST on that sale, unless a specific exemption applies.

  Is PST a business expense?

  When you did your bookkeeping, you would have included PST in the cost of any item you purchased thereby expensing it as it is a legitimate cost of doing business. When you prepare your T2125, you can include the PST paid which means you don’t have to adjust your figures from your income statement.

  What should I charge for PST?

  Yes, if your business resides in a province that has a provincial sales tax, or retail sales tax (RST) as it is also called, you will have to charge, collect and remit PST unless you are selling a product or service that is PST exempt, in most cases.

  Do I charge taxes for services?

  California law restricts the application of sales or use tax to transfers or consumption of tangible personal property or physical property other than real estate. Unlike many other states, California does not tax services unless they are an integral part of a taxable transfer of property.

  Can you expense PST?

  What is the PST for a small business?

  Small Business Guide to PST Page 2 of 18 What is PST? The PST is a retail sales tax that is payable when a taxable good, software or service is acquired for personal use or business use, unless a specific exemption applies. The general PST rate is 7% (see PST Rates below).

  Do you have to pay PST if you are a small supplier?

  However, most provinces do not use the small supplier rule. So if you sell taxable goods or services in a province with PST, you still have to collect and remit PST regardless of your volume of sales, even if you’re not required to collect GST/HST.

  What’s the difference between PST and sales tax?

  What is PST? The PST is a retail sales tax that is payable when a taxable good, software or service is acquired for personal use or business use, unless a specific exemption applies. The general PST rate is 7% (see PST Rates below). Note: PST is different from the federal goods and services tax (GST).

  What do you have to pay PST on in BC?

  Unless a specific exemption applies, the PST applies to:  The purchase or lease of new and used goods in BC  Goods brought, sent or delivered into BC for use in BC The purchase of: • software Item PST Rate